Freddie Mac's Arm's Length Affidavit

So it turns out Freddie requires an arm's length affidavit, but each servicer may have their own form that they use to cover this. To be clear, the Freddie Mac seller/servicer guide states:

"

In addition, the Servicer must obtain an affidavit wherein the parties to the transaction attest that the sale constitutes an "arm'slength" transaction. An "arm's length transaction" is a transaction between parties who are independent of one another, andunrelated and unaffiliated by family, marriage or commercial enterprise, other than the purchase and sale of the MortgagedPremises between the Borrower(s) and the purchaser(s) that is the specific subject of the proposed short sale as disclosed tothe Servicer. This affidavit is to be executed before or at the time of closing of the sale of the Mortgaged Premises by allBorrower(s), purchaser(s), real estate brokers representing any of the parties, the escrow/closing agent performing the closingof the sale, and the transaction facilitator facilitating the sale (if any) certifying under penalty of perjury that:

(a) The sale of the Mortgaged Premises is an "arm's length" transaction, between parties who are unrelated and unaffiliatedby family, marriage, or commercial enterprise;(b) There are no agreements, understandings or contracts between the parties that the Borrower will remain in theMortgaged Premises as a tenant or later obtain title or ownership of the Mortgaged Premises, except to the extent that theBorrower is permitted to remain as a tenant on the Mortgaged Premises for a short term, as is common and customary inthe market but no longer than ninety (90) days, in order to facilitate relocation;(c) Neither the Borrower(s) nor the purchaser(s) will receive any funds or commissions from the sale of the MortgagedPremises;(d) There are no agreements, understandings or contracts relating to the current sale or subsequent sale of the MortgagedPremises that have not been disclosed to the Servicer;(e) Each signatory understands, agrees and intends that the Servicer and Freddie Mac are relying upon the statements madein the affidavit as consideration for the reduction of the payoff amount of the Mortgage and agreement to the sale of theMortgaged Premises;(f) Each signatory agrees to indemnify the Servicer and Freddie Mac for any and all loss resulting from any negligent orintentional misrepresentation made in the affidavit including, but not limited to, repayment of the amount of the reducedpayoff of the Mortgage;(g) The certification will survive the closing of the transaction; and(h) Each signatory understands that a misrepresentation may subject the responsible party to civil and/or criminal liability

All signatures to the affidavit must be notarized. The affidavit may be included with the sales contract, an addendum, or otherpre-closing or closing documents as long as all signatures are obtained before or at the time of closing.In the event the closing agent to the sale is prohibited from signing the affidavit by applicable local, State, or federal law, theServicer may waive the closing agent's signature requirement upon request. The Servicer must condition the waiver upon theclosing agent's agreement that it will not also act as the closing agent on a subsequent transaction involving the MortgagedPremises within one year of closing the short payoff transaction. In all other circumstances, signatures from all parties identifiedabove are required as a condition to Freddie Mac's agreement to accept a short payoff of the Mortgage.If a party reveals an agreement, understanding or contract relating to the current sale or subsequent sale of the MortgagedPremises that indicates the transaction is not an "arm's length" transaction, that the purchaser intends to re-sell the MortgagedPremises in 120 days or less without having substantially refurbished or added value to the Mortgaged Premises, or otherwiseindicates bad faith, collusion or fraud on the part of the parties, the Servicer must withdraw agreement to the short payoff of theMortgage and immediately notify Freddie Mac at mortgage_fraud_reporting@freddiemac.com."

I contacted Freddie Mac to see if they have a form that they give to servicers, and they said that each servicer's legal council would have to draft the form for the Arm's Length Affidavit. Seems odd to me since they basically wrote the entire form.

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